The stock-only deal will see LW CPI issue new shares in the company, which will be exchanged for all the shares of Tweed. The deal will give the current owners of Tweed just under 96 per cent of all shares in the combined company, which will be renamed Tweed Marijuana Inc.

The deal is valued at between $28.5 million and $29.9 million.

The purpose of the reverse takeover is to turn Tweed into a publically-traded company, Tweed chairman Bruce Linton told OBJ in January.

He said that the company chose to do a reverse takeover of a Capital Pool Company, a publicly-traded company with no assets other than cash, because it was a faster route to being listed than an initial public offering.

That speed was important because, last June, there was less than 10 months before the start of new regulations that allow for the production of the company’s product.

Those rule changes, which are set to come into effect in April, allow companies like Tweed to produce marijuana to sell directly to consumers who have a prescription for the drug. However, those companies aren’t allowed to advertise.

That’s the reason Tweed is so interested in becoming a public company: it helps to get the company’s name out.

“Being listed means we’re reliable and transparent,” Mr. Linton said during that January interview.

The deal would make Tweed the first medicinal marijuana company listed on the TSX and appears likely to make it the first marijuana grower traded on any major exchange.

The deal will see Mr. Linton become chair of the new Tweed. Other members of the company’s leadership team, including president and CEO Charles Rifici and CFO Gerald Leahy, will take similar roles at the amalgamated company.

It will also see Andrew Moffat, Larry Poirier and Deborah Weinstein, who are currently directors of LW CPI, join the board of Tweed. Mr. Moffat and Mr. Poirier will become directors and Ms. Weinstein will become the corporate secretary.

Tweed expects to start shipping marijuana to customers at the beginning of April.